Wanting to explore new revenue streams, Chlo decides to start selling gourmet cookies and she starts off

Wanting to explore new revenue streams, Chloé decides to start selling gourmet cookies and
she starts off this new venture by selling (on average) 750 cookies/month at $1.50 each.
Variable costs per cookie are $0.55.
a) What is the sales mix percentage of units sold?
b) What is the weighted average contribution margin? Calculate 2 columns; one for $, one
for %

a. Based on this result, was this a good business decision for Chloé? Why or why
not?

c) Assuming the fixed costs determined in 2b stay the same, what is the revised break-
even point (units)?

Answer rating: 100% (QA)

a To find the sales mix percentage of units sold we need to calculate the proportion of each type of ... View the full answer